Re:Almost 80% of Private Day Traders Lose Money
by empath75 on Monday August 22, 2016 @03:20PM
(#12338694)
I made a >100% return in the last 6 months by buying companies that made products that I understand and use frequently: nvidia and Amazon. I think if you focus on particular industries that you know well you can get an edge on 'the market'. I'm not day trading though, I'm just keeping an eye out for opportunities and trying to balance as much as I can. I'm also just playing with a small IRA account that I can afford to lose.
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Re:Almost 80% of Private Day Traders Lose Money
by resolaibohp on Monday August 22, 2016 @04:26PM
(#12339176)
You could have picked almost any company and made a great return in the last 6 months, assuming you did not buy at the all time highs. The market is reaching record highs right now, so it is easy to believe you have an edge as the times are good.
I would not go so far to say that simply buying companies of products you buy and understand is a viable trading strategy that will give you an edge for >100% returns. When the market is in a downturn this could be very different.
Re:Almost 80% of Private Day Traders Lose Money
by calebgilbert on Monday August 22, 2016 @07:04PM
(#12340063)
"You could have picked almost any company and made a great return in the last 6 months" - exactly. Like crowing about being a great stock picker in '99. So was everyone.
Re:Almost 80% of Private Day Traders Lose Money
by gnaritas on Monday August 22, 2016 @08:09PM
(#12340335)
> made a >100% return in the last 6 months by buying companies that made products that I understand and use frequently: nvidia and Amazon.
https://en.wikipedia.org/wiki/Post_hoc_ergo_propter_hoc
You're making a logical error of assuming that because you made money, your actions caused it, that's not a valid assumption. It's a bull market, that doesn't mean you're a good stock picker.